2.3.5.1 LRT

Key Information Network length xxx Operational lines 2 Stations xxx Ridership xxx Fare system xxx Track and Power xxx Technology Automatic train control Commencement of operations December 1984

Background: is the national capital region of the Philippines, encompassing 16 cities, namely, Manila, , Las Piñas, Makati, , Mandaluyong, , , , , , Parañaque, , San Juan, Taguig and Valenzuela, and the Municipality of Pateros. In addition to the Manila light rail transit (LRT), the region is also served by the Manila Metro Rail Transit system (Manila MRT).

Key players: Light Rail Transit Authority (LRTA), a government-owned and controlled corporation under the Department of Transportation and Communications (DoTC), owns and operates the system.

LRT Line 1 (LRT-1) was initially operated by METRO Incorporated, which was a wholly owned subsidiary of the Manila Electric Company. However, after a turbulent employee strike in 2000, the LRTA decided not to renew the 16-year operations and maintenance (O&M) agreement with METRO and has since taken over the operation of the line.

In October 2014, Light Rail Manila Consortium (LRMC) secured the contract to construct the extension of LRT-1 to as well as provide O&M for the entire LRT-1 for xxx years. The consortium comprises Metro Pacific Investments Corporation (MPIC) Light Rail Corporation (xxx per cent share), Ayala AC Infrastructure Holdings Corporation (xxx per cent share), and Macquarie Infrastructure Holdings Philippines Pte Limited (xxx per cent share). MPIC is one of the three main Philippine units of Hong Kong-based First Pacific Company Limited.

LRTA will continue as a regulating body for the rail transport sector after relinquishing its role of LRT developer and operator to LMRC.

Current network: The system comprises two lines that span about xxx km and cover xxx stations.

Figure 2.3.5.1.1 provides the route map.

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Figure 2.3.5.1.1: Route map

Source: LRTA

Table 2.3.5.1.1 provides the network details.

Table 2.3.5.1.1: Current network

Line Length Operating Operational Terminal stations Stations Operator (Colour) (km) speed (kmph) since Line 1 xxx xxx xxx xxx LRTA xxx December (Green) 1984 Line 2 xxx xxx xxx xxx LRTA xxx April 2003 (Blue) Total - - xxx xxx - - - Source: LRTA

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LRT Line 2 (LRT-2) was constructed at a cost of PHPxxx billion. Most of the funds came as soft loans from the xxx. The concessional loan had a xxx per cent rate of interest for xxx packages, and is payable over xxx years with a xxx-year grace period.

Metro Rail Transit Line 3 (MRT-3) spans xxx km from North Avenue in Quezon City to in Pasay City.

Ridership: Table 2.3.5.1.2 indicates the design capacity and actual ridership of the urban rail lines in Manila.

Table 2.3.5.1.2: Design capacity and actual ridership (2013)

Line Design capacity (per day) Actual ridership (per day) LRT-1 xxx xxx LRT-2 xxx xxx MRT-3 xxx xxx Source: LRTA

Table 2.3.5.1.3 indicates the annual ridership in 2012 and 2013.

Table 2.3.5.1.3: Ridership in 2012 and 2013 (million passengers)

Line 2014 (January to October) 2013 2012 LRT-1 xxx xxx xxx LRT-2 xxx xxx xxx Total xxx xxx xxx Source: LRTA

Rolling stock and technology: LRT-1 uses xxx-car, xxx-car and xxx-car trains. There are xxx railway cars grouped into xxx trains. These include xxx first-generation cars, xxx second- generation cars, and xxx third-generation cars. During peak hour, xxx train trips are provided.

The first-generation trains comprised xxx-car trains supplied by Belgium-based xxx, South Korea-based xxx (both currently part of xxx) and xxx (now xxx). Over time, most of the cars were configured as xxx-car trains.

The second-generation trains comprised xxx-car trains supplied by xxx and xxx and the xxx- generation trains were supplied by Japan-based xxx.

Table 2.3.5.1.4 gives the technical details of the rolling stock on LRT-1.

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Table 2.3.5.1.4: Technical details of LRT-1 trains

Old fleet Transformed train New fleet Parameter (xxx-car train) (xxx-car train) (xxx-car train) Car type xxx xxx xxx Car size xxx xxx xxx Train length xxx xxx xxx Articulation xxx xxx xxx Capacity xxx xxx xxx Traction system xxx xxx xxx Car body shell xxx xxx xxx Source: LRTA

LRT-2 deploys xxx heavy-rail xxx-car trains with xxx bodies and xxx. The trains on LRT-2 are more spacious than the trains on LRT-1 and MRT-3. Each train is xxx metres long and xxx metres wide. It has xxx sliding doors per side, xxx units of mounted air conditioners, a public address system, and a capacity of xxx passengers (xxx seated and xxx standing). During peak hour, xxx train sets are deployed. The maximum speed of the trains is xxx km/hr and the travel time between Santolan and Recto is xxx minutes.

Tracks are xxx. Power is sourced from xxx on board trains (xxx) and overhead catenary (xxx).

An automatic train control (ATC) signalling system is deployed on both lines. xxx, has supplied spare parts for the rolling stock and track guiding system. xxx has supplied spare parts for the signalling and power supply systems. xxx has supplied spare parts for the power supply system.

Fare system: An xxx based on xxx is used for fare collection.

The LRT-1 fare was increased to PHP15 in 2003 but fares on LRT-2 have remained unchanged. The new fare matrix for LRT and MRT will be based on the ‘PHP11 boarding fee plus PHP1 per km’ formula, where users are charged based on travel distance. It will raise the maximum fare on LRT-1 to PHP30 (instead of PHP20 currently) and that on LRT-2 to PHP25 (instead of PHP15). The maximum fare on MRT-3 will increase from PHP15 to PHP28.

Key issues: While LRT-1 serves at capacity, LRT 2 remains underutilised. Currently, xxx trains (xxx light rail vehicles) run every day although the ideal number is xxx trains (xxx light rail vehicles). The number of trains plying the LRT-1 route was down to xxx in 2013 from xxx in 2012 while that of LRT-2 was down to xxx from xxx. This has translated to a higher load factor for both lines (xxx per cent for LRT-1 and xxx per cent for LRT-2).

The growth in passenger volume has been constrained due to insufficient number of trains operating during peak hours. The condition of the trains has been deteriorating and LRTA is encountering problems in sourcing spare parts for trains that have been running for xxx years.

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The government has announced plans to increase the fare of the urban rail systems in Manila but the announcement has sparked protests. Currently, the LRT fare is PHPxxx per trip but passengers pay only PHPxxx and the government provides PHPxxx (xxx per cent of the fare) as subsidy. Similarly, the MRT-3 fare is PHPxxx per trip, but passengers pay PHPxxx and the government provides the remaining PHPxxx (xxx per cent of the fare). The fare increase is being justified on the grounds that it is unfair for the rest of the Philippines to subsidise travel in Metro Manila. In addition, the government expects to generate PHPxxx billion to fund development projects.

Extensions/ Capital projects: The ongoing capital projects are discussed below. xxx: The project involves extension of the line by xxx km from in Parañaque City to Niog in , xxx; the construction of xxx intermediate stations, xxx satellite depot and xxx intermodal facilities; and the acquisition of xxx train sets. Of the total length, xxx km will be elevated and xxx km will be at-grade. The extension is expected to increase daily ridership by xxx passengers.

The xxx stations after Baclaran are xxx. The intermodal facilities are at xxx, xxx and xxx.

Entailing an investment of PHPxxx billion, the xxx extension is the DoTC’s largest public private partnership (PPP) project to date. LRMC has committed to invest PHPxxx billion (about xxx per cent will be debt). It is expected to secure xxx and begin construction by xxx. Service is expected to start by xxx.

The government will acquire right-of-way for the extension and the satellite depot. It will also procure xxx rail cars funded through a grant from xxx. xxx: The project involves the construction of a xxx-km eastern extension of LRT-2 from Santolan in Pasig City to Masinag in Antipolo City. The line will be constructed as an elevated guideway or viaduct. The route will extend from the Santolan station along Marcos Highway in Pasig City up to the intersection of Marcos and Sumulong Highway.

The extension will have xxx new stations. These are the xxx stations.

The government will fund the project cost of PHPxxx billion. Funding of PHPxxx billion has been allotted for the project.

The government will fund the construction of the line; procurement of rolling stock; installation and commissioning of the signalling, power supply, and telecommunication systems; as well as the integration of the existing xxx with the Masinag extension.

LRT-MRT common ticketing: The project includes design, development, installation and implementation of a single ticketing system for LRT and MRT to replace the existing magnetic tickets; provision of the contactless media; maintenance of the system for a period of xxx years; and operation of the xxx. In future, the system may be expanded to buses and toll roads.

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In xxx, the xxx secured the PHPxxx-billion contract to implement the project as a PPP. The consortium includes xxx, xxx, xxx, xxx, and xxx.

The new system is expected to be in service byxx. The consortium will set up the infrastructure at no cost to the government or to the passengers.

LRT-MRT common station: The station will connect LRT-1, MRT-3, and the upcoming MRT-7. The government will fund the project cost of PHPxxx billion. The station design has been bundled with the contract for the xxx project and is planned to be opened in xxx.

The DoTC is interested in constructing a station adjacent to the TriNoma Mall in Quezon City. However, in xxx, the Supreme Court barred the transfer of the station project from SM City North EDSA to the Ayala-owned TriNoma Mall based on a petition filed by SM Prime Holdings Incorporated. The DoTC continues to look for a win-win solution such as constructing a ‘mini- station’ at SM City North EDSA to cater to LRT-1 and MRT-7 while the common station in TriNoma will service LRT-1 and MRT-3. Box 1 provides a brief description of MRT-7.

Box 1: MRT-7

San Miguel Corporation is constructing MRT-7, which will extend xxx km from North Avenue in Quezon City to San Jose del Monte in Bulacan, covering xxx stations. It is scheduled to be completed by xxx at an investment of PHPxxx billion and serve xxx million passengers per day. The route will begin at Tala in Caloocan City, pass through Lagro, Fairview, Novaliches, Batasan, Diliman and Philcoa, before ending at the planned common station.

Source: Global Mass Transit Research xxx: The project involves the construction of a xxx-km extension of the line from the on xxx to the North Avenue station of xxx, along with xxx additional stations at xxx. The original project cost was PHPxxx billion but it was revised up to PHPxxx billion based on different options for the common station. The project is expected to be completed by xxx.

LRT rehabilitation: LRTA is rehabilitating both LRT lines with funding support from the national government. Table 2.3.5.1.5 indicates the ongoing projects.

Table 2.3.5.1.5: Ongoing LRT rehabilitation projects

Contract value Project description Contractor (PHP million) Upgrading digital trunk radio system for LRT-2 xxx xxx Systematic rail replacement for LRT-1 Revenue Line xxx xxx Systematic replacement of gantry anchor bolts for xxx xxx LRT-1 Revenue and Connecting Line JV – joint venture Source: LRTA

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xxx: The project involves the construction of a xxx-km spur line from the Baclaran station of LRT-1 to Terminal 3 of Ninoy Aquino International Airport (NAIA), covering xxx new stations. The projected capacity is xxx passengers per hour per direction or xxx passengers per day.

The project is in the conceptual design/ pre-feasibility study stage. LRTA could implement the project either through a PPP or government funding.

Recent developments: In November 2014, the following developments were recorded:

DoTC extended the deadline to submit pre-qualification documents for the PHPxxx- billion LRT-2 xxx contract from xxx, to xxx. The nine bidders submitting pre- qualification documents are xxx, xxx, xxx, xxx, xxx, xxx, xxx, xxx, and xxx.

The winning concessionaire will xxx the existing LRT-2 for xxx years (subject to an extension of xxx years), xxx the system with the xxx, and maintain the xxx, electrical and mechanical systems, xxx, stations, xxx and related assets.

DoTC plans to announce the qualified bidders by xxx, receive bids by xxx, issue the notice-of-award by xxx, and sign the concession agreement by xxx.

Bids were invited for the PHP xxx-billion contract to construct the xxx. The construction was not bundled with the xxx contract unlike the LRT-1 project due to difference in funding. The xxx will be funded by the government through the General Appropriations Act, unlike the xxx, which was bid as a PPP.

DoTC earmarked PHP xxx million to hire a consultant for the xxx project.

xxx provided PHPxxx million to xxx (in which it has a xxx per cent interest) for investment in the xxx.

In October 2014, the following developments were recorded:

LRTA declared a failed bidding for the PHP xxx -million maintenance contract for LRT-1 because no bidder submitted a bid. Interested companies are concerned about the financial viability of the short-term contract that covers only one year. The interested companies include xxx, xxx, and xxx.

The laying of rail tracks connecting LRT-1 and MRT-3 was set to be completed by xxx at an investment of PHP xxx billion.

It was announced that a fare increase on Metro Manila's urban rail lines would be implemented on or before LMRC takes over xxx in xxx. Passengers will be charged based on the PHPxxx base fare plus PHP xxx per km (PHP xxx+xxx) formula. There will be a xxx per cent fare increase every year to cover inflation but implementation will be done every xxx years.

In September 2014, the following developments were recorded:

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LRMC secured the concession to build, operate and maintain the xxx.

LRMC signed a technical service agreement with xxx for O&M of LRT-1; an engineering, procurement and construction agreement with xxx; as well as a design and construction agreement with xxx.

DoTC was awaiting the opinion of the Office of the Solicitor General on whether or not the government could grant the xxx project to LRMC given the pending temporary restraining order regarding the transfer of location of the LRT-MRT common station. The xxx is bundled with the preliminary design of the common station. Construction of the station is to be conducted separately once the case is resolved.

LRTA reduced the cost of the xxx-year xxx contract for LRT-2 by PHPxxx million to PHP xxx billion by reducing the scope of work and pushed back the bid submission deadline from xxx, to xxx. The brake operating unit, gangway and janitorial services have been removed from the scope of work.

The joint venture of xxx, xxx and xxx commissioned the concrete sleeper-making machine at the xxx to replace worn out rails of xxx under a PHPxxx-million contract. The concrete sleepers are rectangular supports to install new rails. The actual replacement of rails along xxx is to start on xxx; work will be done from midnight to 3 a.m. It will take at least xxx years to finish the installation of new rails along the northbound tracks from Baclaran in Pasay to Blumentritt in Manila and along the southbound tracks from Monumento in Caloocan to Abad Santos in Manila.

(1 PHP [Philippine Peso] = xxx USD)

Project contacts:

xxx, Transportation Secretary

xxx, Undersecretary for Legal Affairs and Chairman of the Bids and Awards Committee, DoTC

xxx, Chairman of the Bids and Awards Committee – Rail, LRTA

xxx, Administrator, LRTA

xxx, CEO, Comm Builders and Technology Philippines

xxx, Executive Director, Public-Private Partnership Center

xxx, President and CEO, Ayala Corporation

xxx, Executive Vice President, Ayala AC Infrastructure Holdings Corporation

xxx, President and CEO, Ayala AC Infrastructure Holdings Corporation

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xxx, President, MPIC

xxx, Chief Financial Officer, MPIC

xxx, President, RATP Developpement

xxx, CEO, Bouygues Travaux Publics

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